Could Easing Biodiversity Net Gain Rules Fuel Smaller Housing Development Growth?

The UK government is currently inviting feedback on potential changes to the Biodiversity Net Gain (BNG) policy, a drive that could revitalise smaller housing developments. This consultation will run until 11:59 PM on July 24, 2025, and it highlights vital discussions about balancing new housing projects with ecological concerns. Understanding the nuances of BNG, the reason for its review, and the objectives set by the government is crucial for all stakeholders in the housing sector.

What is Biodiversity Net Gain (BNG)?

Biodiversity Net Gain is a vital policy in the UK that mandates new developments contribute positively to biodiversity. Starting February 2024, developers in England will be required to achieve at least a 10% improvement in biodiversity for any new site.

The BNG approach requires that developers either restore or enhance natural habitats, ensuring that the environment is improved rather than merely preserved. For example, if a housing project displaces a local species, developers might be required to create new habitats or restore existing ones elsewhere to ensure those species thrive.

Why the Review?

The current review of BNG rules targets the challenges faced by small and medium-sized builders. Here are some key concerns:

• Proportional Costs: Small developers often face costs related to BNG that can reach up to 30% of their project budgets, making it difficult to compete against larger firms that benefit from economies of scale.

  
  

• Resource Bottlenecks: A shortage of trained ecologists means that projects often face delays, with potential planning approvals taking up to six months longer than anticipated in some regions due to lack of resources.

  
  

• Need for Clarity: Developers frequently request clearer guidelines to simplify meeting BNG requirements. For example, a common request is for detailed examples of what successful biodiversity enhancements look like in practice.

  
  

To address these challenges, the government suggests several changes:

1. Extending Exemptions: Minor projects may see reduced obligations, potentially lowering costs significantly for small builders.

   
   

2. Simplifying Metrics: By introducing an easier metric for small sites, compliance could become much more straightforward.

   
   

3. Access to Off-site Markets: Greater access to off-site biodiversity projects may allow developers more flexibility in how they meet requirements, rather than being restricted to on-site options alone.

   
   

4. Addressing Brownfield Challenges: Focus efforts on brownfield sites, where habitat creation opportunities can be limited.

   
   

Balancing Growth and Nature Recovery

Angela Rayner, the Housing Secretary, emphasises that these proposed changes aim to "simplify" planning, thus speeding up housing developments on smaller sites while still prioritising environmental protections.

However, this balance raises crucial questions. How can the government encourage housing growth while safeguarding biodiversity? The government argues that easing BNG rules can help increase housing availability during a time of heightened demand, particularly since the UK needs at least 300,000 new homes annually to meet its housing crisis.

It is essential, however, that any regulatory relaxations keep developers accountable for their environmental footprint. The primary goal remains ensuring that biodiversity is not sacrificed for the sake of development.

The Potential Impact on Smaller Housing Developers

Easing BNG rules could level the playing field for smaller housing developers who have historically struggled against larger companies. By reducing financial burdens and simplifying compliance, smaller builders could enter the market more easily and undertake more new housing projects.

This shift could stimulate local economies. Greater numbers of projects could lead to an increase in jobs in the construction sector and related industries. Communities could benefit directly from increased housing supply, helping to address local housing shortages.

Wrapping Up

The UK government's consultation on easing Biodiversity Net Gain rules for smaller developments holds the potential to transform housing development. While simplifications are welcome, it is vital to ensure ecological integrity is not compromised.

Navigating the balance between housing growth and environmental protection is essential for future developments in the UK. This dialogue presents a significant opportunity for all stakeholders to create a support framework for sustainable housing solutions that prioritise biodiversity.

Ensuring that future housing growth does not come at the expense of the environment is paramount. As the deadline approaches, collaboration among industry players, conservation advocates, and the government will be essential to pursue sustainable development goals.